Once the adjusting entries are posted, the adjusted trial balance is prepared to
A) verify that the debits and credits are in balance
B) verify that all of the adjustments were posted in the correct accounts
C) verify that the net income (loss) is correct for the period
D) verify the correct flow of accounts into the financial statements

Question

Quizplus · Accepted Answer

The purpose of preparing an adjusted trial balance is to verify that the total debits and credits in the accounts are equal, thus ensuring that the fundamental accounting equation (Assets = Liabilities + Equity) remains in balance. This is achieved through the inclusion of adjusting entries that reflect any necessary changes to account balances. The adjusted trial balance provides a basis for preparing accurate financial statements, as well as ensuring the integrity of the accounting system. Therefore, A is the best choice, as it accurately describes the primary purpose of preparing an adjusted trial balance.

Once the Adjusting Entries Are Posted, the Adjusted Trial Balance